General News of Monday, 8 October 2018
Customers who wish to terminate their investment transaction with gold trading company, Menzgold, will receive a full payment of their investment in 90 days if the ongoing misunderstanding with statutory institutions is resolved.
Menzgold made this known in a statement signed by Head of Communications of the company, Nii Amarh Amartefio.
The statement was part of an agreement reached with a section of its customers at a meeting held in Accra on Sunday.
“Should Menzgold succeed in reaching an amicable resolution with the authorities, customers wishing to continue trading with Menzgold are free to exercise the option of continuing to trade with us. Similarly, customers wishing to terminate their business with Menzgold are free to do so and should be rest assured of their full payment in 90-days as stipulated…” the statement said.
Menzgold further indicated in the statement that “it may not be possible to pay all customers 50% of the total value of gold traded” as suggested. It was however quick to add that the company’s board has directed management to “asses the company’s potential cash flow and determine the exact percentage that can be realistically honoured by the company to all customers in four (4) weeks.”
The company said the percentage to be paid these customers will subsequently be officially communicated in a press release and by direct communication with each customer.
Menzgold has not been able to pay matured returns to its investors since the Security and Exchanges Commission (SEC) ordered it to suspend its gold trading operations to the public.
The company in an attempt to call the bluff of SEC came up with a payment schedule to pay its clients, but the said payments have been postponed for three consecutive times.
The delayed payments continue to stir up anger among Menzgold customers, as they have vowed to use every means possible to retrieve their investments.
We can’t pay dividends due to SEC’s action – Menzgold
Menzgold had earlier said it is unable to pay its customers matured dividends on their gold investments due to the action that was taken against it by the SEC.
“The gold collectibles offered for trade by patrons of our gold vault market product are subject to our quality controls and traded for profit which is shared as an extra value with the product owner or trader. Any act, order or instruction, therefore, designed or decreed to forbid Menzgold from trading makes it impossible to generate any revenue whatsoever out of which extra values are charged and paid to those entitled,” Menzgold said in a statement dated September 25, 2018.
But the SEC did not agree with Menzgold’s position, saying its action did not stop them from paying customers returns on already existing investments.
Meanwhile, the SEC has indicated that it is yet to receive adequate information from Menzgold after it ordered the suspension of its gold trading business.
Menzgold has sued the Securities and Exchange Commission (SEC) and the Bank of Ghana.
The company in its suit is seeking from the court an order directing the two institutions to stop interfering in its business.
They are also asking the court to stop the Bank of Ghana and the SEC from publishing what they have described as “derogatory notices” against their business.
‘We’ll settle you completely, be patient – Menzgold Boss
The Chief Executive of the company, Nana Appiah, had a few days ago assured that they were preparing to release all locked up cash.
In a late night message on Twitter however, Nana Appiah urged his clients to exercise some restraint for the protection of his business.
“I humbly urge all Menzgold clients to kindly remain calm, as we prepare to COMPLETELY SETTLE all entitlements of any magnitude soon. We’ve got brands & names to protect.”